Expired Tax Breaks

[Snaggletooth]

It's Done!

Yep! Thanks JIMMCG for keeping us abreast of the votes. It is certain Bush will co-operate.

The headlines in the NASHVILLE TENNESSEEAN read "Congress Passes Sales Tax Extension". Watching some TV this morning, every new car dealer in town is advertising it.

[jimmcg]

Hr6408

Here is an interesting item that I was not aware of and is supposed to be buried deep in the bowels of HR6408. "Starting for mortgage insurance contracts issued in 2007 and only available to taxpayers who itemize their deductions and whose gross income does not exceed $110,000 is a deduction for homeowner premiums paid for mortgage insurance." I have not really read the contents of the propossed legislation and therefore cannot attest to the validity of this so we will wait and get the opinion of the experts on this when the dust settles.

[Snaggletooth]

Technical Corrections

Wow! Jimmy I think this must be something the Mortgage Banking lobby threw up on the back of the truck just as it was pulling out. As I said in an earlier post, when there's a bill on the fast track, lots of evil jumps on the train under the cover of a popular bill.

I think this is bad. Bankers sell mortgage insurance at a horrendous rate, ripping off unsuspecting borrowers who sign a stack of 20 documents when a house in closed. Life insurance rates to cover the mortgage are about 25-30% of mortgage insurance if the truth were known to the borrowers. A banker told me once he made more money on mortgage insurance than he did on the mortgage!

Sometimes various provisions of tax bills rushed through (as this one) suffer the fate of being weeded out as "technical corrections" and are quickly discarded. Technical corrections go in both directions and at least theoretically serve the purpose of negating tax consequences of poorly written and incompatible clauses. They usually come out very quickly on the heels of major tax legislation. Sometimes Congressmen and Senators who have private holdings who are adversely affected by legislation that they themselves recently sign, actually PUSH for technical corrections to preserve their favors.

[Unregistered]

From Thomas Web site, http://thomas.loc.gov/home/thomas2.html

H.R.6408
Title: To amend the Internal Revenue Code of 1986 to extend expiring provisions, and for other purposes.
Sponsor: Rep Thomas, William M. [CA-22] (introduced 12/7/2006) Cosponsors (None)
Latest Major Action: 12/7/2006 Referred to House committee. Status: Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Resources, Education and the Workforce, and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.


There is no way they can get this thing through all these committees today, then on to the House floor and Senate to be passed before the end of today when Congress adjourns for the year.

They pulled a fast one on you by working into the wee hours of Saturday morning!

[S T]

Expired and Extended

Well I guess the TB staff will now be up until the "wee" hours of the morning, so they can post the updates for us.



Sandy

[Bees Knees]

They pulled a fast one on you by working into the wee hours of Saturday morning!

Yes they certainly did. Gee, I wonder what I will do about that.....let's see.......Hmmmnnn....what to do.....(thinking....thinking.....)

[John of PA]

Passed!!!

What I read is the expired tax breaks did not expire, they were just passed, however the IRS forms will not reflect them. Probably our software will automatically put them on an attached schedule.

[veritas]

A parting shot

from a tax cut and spender.

http://www.dfw.com/mld/dfw/news/16209459.htm

good riddance

[Bees Knees]

What I read is the expired tax breaks did not expire, they were just passed, however the IRS forms will not reflect them. Probably our software will automatically put them on an attached schedule.

The 1040 proof had line 23 for Archer MSAs, which could have easily been combined with line 25 HSAs, and line 34 jury duty pay, which could have easily been an add on for line 36. Line 23 was going to be the educator expense deduction and line 34 was going to be the tuition and fees deduction, which is what they were in 2005.

However, since the final 1040 and final 1040 instructions already have those two lines for Archer MSAs and Jury Duty, my prediction is the Educator Expense Deduction will be an add on for line 36, using "EED" as the identifier, and the Tuition and Fees deduction also an add on for line 36, using "TFD" as the identifier.

Anyone ready to place their bets?

[Armando Beaujolais]

The 1040 proof had line 23 for Archer MSAs, which could have easily been combined with line 25 HSAs, and line 34 jury duty pay, which could have easily been an add on for line 36. Line 23 was going to be the educator expense deduction and line 34 was going to be the tuition and fees deduction, which is what they were in 2005.

However, since the final 1040 and final 1040 instructions already have those two lines for Archer MSAs and Jury Duty, my prediction is the Educator Expense Deduction will be an add on for line 36, using "EED" as the identifier, and the Tuition and Fees deduction also an add on for line 36, using "TFD" as the identifier.

Anyone ready to place their bets?

I'll lay down a mythical $50 bill on line 36.

I know this website has a polling feature. Is there an odds feature?

[Brad Imsdahl]

However, since the final 1040 and final 1040 instructions already have those two lines for Archer MSAs and Jury Duty, my prediction is the Educator Expense Deduction will be an add on for line 36, using "EED" as the identifier, and the Tuition and Fees deduction also an add on for line 36, using "TFD" as the identifier.

Anyone ready to place their bets?

I'll bet $500 you are wrong.

We have just received advance proof copies from IRS on the new sales tax tables, along with instructions on how to handle the sales tax deduction, the educator expense deduction, and the tuition and fees deduction.

All of this information along with complete coverage of the new tax bill will be posted on our updates page shortly.